LeoVegas is set to purchase Royal Panda Casino for as much as €120 million

Published by CasinoTopsOnline on October 30, 2017 in Industry News

LeoVegas Buying Royal PandaA recent announcement has revealed that the LeoVegas Group could soon be purchasing well-known online casino, Royal Panda before the year is done.

One of the most popular mobile-focused casinos on the market, LeoVegas may be stepping in to acquire Royal Panda for a sum of up to €120 million. The LeoVegas Group will look to acquiring all of the RP shares currently owned by Web Investments Ltd with the final transfer to be completed by the 1st of December 2017.

After obtaining debt financing of up to €100 million (of which €40 million is revolving credit), LeoVegas is working to purchase Royal Panda for €60 million. A further €60 million would be paid out to Royal Panda if certain financial milestones are met.

Purchase Details

Not only could this purchase boost the LeoVegas Group’s plans for expanding into the regulated online casino markets (especially within the UK), but it could also prove very profitable for both parties.

After the recent launch of a sportsbook at Royal Panda, the casino now appeals to a wider market within the UK. In fact, the UK market made up a whopping 50% of the online casino’s revenue in the third quarter of 2017.

However, in order to receive the additional €60 million earn-out payment, Royal Panda will have to meet the following requirements after it’s acquired by LeoVegas, within 12 months of the purchase.

Net Gaming Revenue equalling €50 million, of which €34 million will have to be obtained from the UK market.

EBITDA (or Earnings Before Interest, Taxes, Depreciation and Amortization) of at least €15 million, of which €5 million will have to be earned from the UK market.

If these specific goals are not met in time, Royal Panda would not receive the additional €60 million payout.

LeoVegas Goals

While LeoVegas may already be a popular online casino, they are always looking to the future and aiming to expand their reach. By acquiring Royal Panda in this fashion, the group’s goals will only be strengthened.

"Royal Panda has in a short time built up an efficient business with an exciting and strong brand. This is a major acquisition that we are carrying out following a carefully executed process,” said LeoVegas Group CEO, Gustaf Hagman. 

“With the help of the strong symbolic value in the panda, the company has built a premium brand among gamers, and we will complement LeoVegas with Royal Panda. This gives us two great brands with global appeal, which makes the scalability in the continued growth strong while strengthening our position in the UK.”

As LeoVegas aims for long-term organic growth in the market, they seem to be determined to push for excellence wherever possible. Thanks to deals such as this one, the group and the casinos it represents, is set to have a very bright future in the online and mobile casino industry.